When it comes to loaning out money for commercial properties, single-family residences, and condos, most are familiar with the basic formula. Banks and lenders have to be knowledgeable about the credit history, credit rating, and income level of those who they are loaning money to. This is to ensure that the loan can be paid back and the project can be completed without issue. However, sometimes a productive and financially stable individual may desire a loan but may lack the established financial data that lenders look for.
Some individuals have their finances well-established, but the sources are sometimes difficult to verify. This could be because the individual is an independent contractor, someone who does temporary jobs, or someone who has assistance from their family. In any case, these undocumented sources of income can sometimes make it difficult to acquire loans for large projects dealing with real estate.
Stated income loans exist for helping individuals who are in this situation. By demonstrating good credit and a verified source of funds, borrowers can qualify for loans for a variety of establishments. These can range from residences designed for families to commercial properties such as office buildings and warehouses. These types of loans can be very beneficial to individuals who have the means to organize and strategize well after receiving the proper funding.
Stated income loan borrowers can benefit from understanding the terms and conditions of these loans based on their income level and credit history. Enlisting the help of an established name in the industry that has experience with stated income loans can be a very wise choice when starting the process of developing commercial properties or residences for families.
Lenders have to be careful when it comes to financing projects headed by borrowers with unverifiable income. This is understandable, but it doesn’t mean that it is impossible for individuals with non-traditional methods of income to acquire loans. Partnering with Starr Mortgage Company that has a reliable track record of overseeing stated income loans and can help start any project off in the right way.